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TV mega-deal: Discovery acquires Scripps for $14.6B

Discovery Communications, Inc. announced Monday that it's buying Scripps Networks Interactive, Inc. via a cash-and-stock transaction valued at $14.6 billion, or $90 per share. The transaction will finalize by early next year.

The deal is massive: With the acquisition, Discovery will own about 20% of cable viewership and will own five of the top pay-TV networks for women.

Why it matters: The merger gives Discovery more leverage to negotiate better distribution deals with the broadband companies. The acquisition of Scripps' lifestyle properties, like Food Network, HGTV and Travel Channel, add heft to Discovery's similarly lifestyle/adventure-based portfolio that they could leverage to develop their own non-sports skinny bundle.

What to watch: The move represents a growing trend of consolidation in the cable and telecom sectors as cord cutting intensifies and streaming TV consumption increases.